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County auditors report clean regulatory audit, note PBC cash shift and OMB grant oversight risk
Summary
Auditors told the Geary County Commission the 2025 audit carries an adverse GAAP opinion but an unmodified regulatory-basis opinion, highlighted a $6 million PBC-related cash movement and said recent OMB guidance changes could increase subrecipient oversight requirements.
Jacob Puyoff, the audit partner from James Gordon & Associates, told the Geary County Commission the firm issued "an adverse opinion under GAP and an unmodified opinion under the regulatory basis," explaining the county does not follow GAAP while meeting regulatory reporting requirements. He said the auditors found no material weaknesses or significant deficiencies for 2025 and that revenue was roughly $39,000,000 with expenses largely unchanged from 2024.
The audit packet, Puyoff said, shows a roughly $700,000 change in unencumbered cash when excluding the PBC, and a larger PBC-related cash movement that reduced reported cash from about $16,000,000 to $10,000,000 after bond-related deferred maintenance payments. "If you include the PBC, you'll see how that cash balance went from 16,000,000 to 10,000,000," he said, adding that the change related to bond activity for deferred maintenance rather than operating shortfalls.
Commission staff and the auditor also discussed federal compliance. A staff member warned commissioners about proposed OMB guidance that could require counties to assume oversight responsibilities for subrecipients previously treated as pass-throughs: "there's new legislation that the OMB is putting down where they can potentially stop our funding midstream for federal grant funding," the staff member said, urging review of the letter circulated to the commission.
The auditor flagged a national change in the single-audit threshold — raised from $750,000 to $1,000,000 — which will likely reduce the county's single-audit instances. Puyoff said the threshold change means Geary County "probably won't have a single audit unless something significant comes forward," noting it spares the county an additional $5,000–$7,000 in audit costs when single audits are required.
County staff said an electronic copy of the audit will be placed on the county website and shared with department heads to meet disclosure requirements. Commissioners discussed posting resolutions and other records online to improve public access.
A motion to approve minutes from the joint city–county–chamber meeting passed by voice vote during the same session. The commission was told the auditor will provide an electronic copy of the audit report for public posting and departmental distribution.
The commission did not vote on policy changes related to OMB guidance during the meeting; staff said they would review the circulated letter and pursue follow-up if required.
